Not the ticket: Budget deal is unfair to arts groups

Many performing arts programs, zoos and museums are run on a shoestring budget.

They usually use much of their ticket sales to pay staff and keep operations functioning.

That’s why we are surprised to see budget negotiators apparently asking these groups to take on the added financial burden of helping to fill the gaping budget hole.

Lawmakers and Gov. Ed Rendell are counting on these entities to bring in up to $120 million in state revenues for the spending plan they are moving forward for a vote in the General Assembly.

Tremors are traveling through the arts community for organizations such as the Harrisburg Symphony Orchestra, Open Stage of Harrisburg and Hershey Entertainment, which books concerts at Hersheypark Stadium and Giant Center.

With no warning, they are all trying to understand exactly whether the 6 percent sales tax would apply to them.

Sen. Jake Corman, Republican appropriations chairman, said that only "professional" performances would be taxed. What does that mean?

Most small nonprofit groups, from museums to choral groups to community theaters, operate with only a few paid staff, the rest are volunteers.

Certainly an argument could be made for taxing bigger entities that bring in acts such as Taylor Swift and Bruce Springsteen, but taxing smaller organizations just doesn’t make sense.

Supporters argue some of the money will go to a special state fund for the arts and cultural institutions.

This, they say, would provide constant funding even during unsure budgetary times. So far no one has made public any research that shows exactly how much money will be channeled into this fund and, if so, whether arts programs would be better off than under the current system.

Sen. Corman says this tax works because arts and entertainment events are the ultimate discretionary buy.

Really? We wonder whether there also might be another reason for them being chosen.

Professional spectator sports also were on the list of new tax possibilities. A tax would have brought in a projected $65.3 million, according to projections. That ended up not being included.

It is difficult to overlook the lobbying power of professional sports teams.

During football season, our governor even appears on Comcast’s Philadelphia Eagles pregame and postgame shows as a regular commentator.

In Pittsburgh and Philadelphia, pro franchises managed to get taxpayer funding for new stadiums when financial times were better yet they are not being asked to help with the commonwealth’s deficit now that times are tougher.

Instead of the Steelers and Phillies helping close the budget gap, nonprofit organizations, such as the Pittsburgh Zoo, the Academy of Natural Sciences in Philadelphia and Harrisburg’s Market Square Concerts, seem slated for that.

And if lawmakers and the governor argue these are tough times that call for tough decisions, how about looking for recurring revenue from a tax on cigars and smokeless tobacco that could bring in $70 million?

Add to that a severance tax on Marcellus shale drilling, estimated by the Pennsylvania Budget and Policy Center at $47 million (and expected to increase in coming years) along with a sales tax on spectator sports and you have a grand total of $182.3 million.

Of course, unlike the sports and natural gas industries, not many nonprofit arts and entertainment organizations nor their audiences have powerful lobbyists.

Legislative leaders are discussing the budget details with their rank-and-file members this week before a vote on the spending plan.

There is still time for members to say no to a sales tax on the arts, museums and zoos.